Common use of Operations by Fewer Than All Parties Clause in Contracts

Operations by Fewer Than All Parties. If after the second notice provided for in Article 12.2 above, less than all, but one (1) or more Parties owning twenty-five percent (25%)or more in interest in the Lease, elects to participate in such operation, the proposing Party shall advise the Participating Parties of (a) the total interest of the Parties approving such operation, and (b) its recommendation as to whether the Participating Parties should proceed with the operation as proposed. Each Participating Party within forty-eight (48) hours after receipt of such notice, shall advise the proposing Party of its desire to (a) limit participation to its existing working interest, or (b) carry its proportionate part of or any part of the Non-Participating Parties' interest. Failure of a Participating Party receiving such a notice to reply within the fixed period shall constitute an election by the Party not to carry its proportionate part of the Non-Participating Parties' interest. The proposing Party, at its election, may withdraw such proposal if there is insufficient participation, and shall promptly notify all Parties of such decision. If the operation is fully subscribed, it shall be conducted as a Non-Consent Operation for the joint account of the Participating Parties. If such operations are to be conducted from an existing Platform, the election to participate shall be made by one (1) or more Parties having a combined participating interest of twenty-five percent (25%) or more in such Platform. 42

Operations by Fewer Than All Parties. If after the second notice provided for in Article 12.2 above, less than all, but one (1) or more Parties owning twenty-five percent (25%)or 25%) or more in interest in the Lease, elects elect to participate in such operationoperations, the proposing Party Party, immediately after the expiration of the notice period in Article 11.2, above, shall advise the Participating Parties of (a) the total interest of the Parties approving such operation, and (b) its recommendation as to whether the Participating Parties should proceed with the operation as proposed. Each Participating Party Party, within five (5) business days or forty-eight (48) hours if rig is on location, after receipt of such notice, shall advise the proposing Party of its desire to (a) limit participation to its existing working interestsuch Party's interest as shown on Exhibit “A", or (b) carry its proportionate part of or any part the Non-Participating Parties' interest. Each Participating Party shall be entitled, but not obligated, to acquire its share of the Non-Participating Parties' interestshare in the ratio that such Parties' working interest at the time the original proposal was made bears to the total working interest of all Participating Parties. Failure of a Participating Party receiving such a notice to reply within the fixed period shall constitute an election by the Party not to carry its proportionate part of the Non-Participating Parties' interest. The proposing Party, at its election, may withdraw such proposal if there is insufficient participation, and shall promptly notify all Parties of such decision. If the operation is fully subscribed, it shall be conducted as a Non-Consent Operation for the joint account of the Participating Parties. If such operations are to be conducted from an existing Platform, Parties and the election to participate following special provisions shall be made by one (1) or more Parties having a combined participating interest of twenty-five percent (25%) or more in such Platform. 42apply:

Operations by Fewer Than All Parties. If there are more than two (2) Parties to this Agreement, then, after the second notice provided for in election made under Article 12.2 above10.4 (Second Opportunity to Participate), less fewer than all, all but one __________ (1) or more Parties owning twenty-five percent (25%)or more in interest in the Lease, elects to participate in such operation, the proposing Party shall advise the Participating Parties of (a) the total interest of the Parties approving such operation, and (b) its recommendation as to whether the Participating Parties should proceed with the operation as proposed. Each Participating Party within forty-eight (48) hours after receipt of such notice, shall advise the proposing Party of its desire to (a) limit participation to its existing working interest, or (b) carry its proportionate part of or any part of the Non-Participating Parties' interest. Failure of a Participating Party receiving such a notice to reply within the fixed period shall constitute an election by the Party not to carry its proportionate part of the Non-Participating Parties' interest. The proposing Party, at its election, may withdraw such proposal if there is insufficient participation, and shall promptly notify all Parties of such decision. If the operation is fully subscribed, it shall be conducted as a Non-Consent Operation for the joint account of the Participating Parties. If such operations are to be conducted from an existing Platform, the election to participate shall be made by one (1___) or more Parties having a combined participating interest Working Interest of twenty-five __________ percent (25___%) or more have elected to participate in the proposed operation, the proposing Party shall notify the Participating Parties, and each Participating Party shall have __________ (___) hours, [ ] inclusive [ ] exclusive of Saturdays, Sundays, and federal holidays, after receipt of the notice to notify the proposing Party of the portion of costs and risks attributable to the total Non-participating Parties’ interests it elects to pay and bear. Unless otherwise agreed by the Participating Parties, each Participating Party may, but shall not be obligated to, pay and bear that portion of the costs and risks attributable to the total Non-participating Parties’ interests in the ratio that the Participating Party’s interest bears to the total interests of all Participating Parties who elect to pay and bear a portion of costs and risks attributable to the total Non-participating Parties’ interests. Failure to respond shall be deemed to be an election not to pay or bear any additional costs or risks. If the Participating Parties agree to pay and bear one hundred percent (100%) of the costs and risks of the operation, Operator, subject to Article 4.2 (Substitute Operator), shall conduct the operation as a Non-consent Operation for the benefit of the Participating Parties, and the provisions of Article 13 (Non-consent Operations) shall apply. If such Platform. 42agreement is not obtained, however, the operation shall not be conducted and the effect shall be as if the proposal had not been made.